Biometric arranges $1.75m private placement
Biometric Security Corp BMS
Shares issued 20,834,412 Feb 1 close $0.20
Tue 2 Feb 99 News Release
Mr. Patrick McCleery reports
The company has agreed, in principle, with Goepel McDermid Securities of
Vancouver, B.C., to act as an agent in a brokered private placement, on a
best efforts basis, of 11,666,666 units at 15 cents for $1,750,000. Each
unit will consist of one share and one two-year warrant exercisable at 15
cents per share in the first year and at 17 cents per share in the second.
Remuneration to Goepel for acting as agent will consist of a 10 per cent
commission payable in cash, and a two-year broker warrant exercisable into
shares of the company not exceeding 15 per cent of the number of units
issued to investors pursuant to the private placement. The broker's
warrants will be exercisable at 15 cents per share in the first year and at
17 cents in the second. Proceeds will be used for further investment in
Biometric Identification Inc. and working capital purposes.
The company has called for an EGM to be held on April 12, 1999, whereby the
company will seek shareholder approval of a one for five consolidation and
to re-domicile the company to the Province of British Columbia.
The company has an agreement to acquire up to 45 per cent of Biometric
Identification for an investment of $5-million (U.S.) in convertible
debentures. To date, Biometric Security has invested $2,875,000 (U.S.) in
Biometric Identification for research, engineering, marketing and working
capital.
Biometric Identification, located in Sherman Oaks, Calif., was launched in
1996 to provide biometric-based verification solutions that can be
self-contained or make use of external systems for processing and data
storage.
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